Good News From Parlay Entertainment Inc
Published: Friday, November 10, 2006 Online-Casinos.com
GOOD NEWS FROM PARLAY
Third quarter and nine month results break company records
Shareholders will be pleased with the performance of Canadian Internet bingo software supplier Parlay Entertainment Inc., which announced record results for the three and nine-month periods ended September 30, 2006 this week.
"We are extremely pleased to have established new corporate records during this quarter," said Scott F. White, President and CEO.
"Increasing our third quarter revenue by 68 percent to $2.6 million, our third quarter earnings per diluted share by 50 percent to $0.03 and increasing our cash reserves by 131 percent to $2.9 million.
"With revenue for the nine-month period ended September 30, 2006 surpassing our revenue for all of fiscal 2005, we would conclude that our current share price does not adequately reflect our success in 2006 nor our prospects for 2007."
Highlights for the third quarter of fiscal 2006 include:
* New corporate record for revenue at $2 647 668, up 20 percent from the prior record for Q2 2006 and up 68 percent from Q3 2005.
* Royalty revenue at $1 937 754, up 31 percent from Q3 2005.
* New corporate record for net income at $501 931 or $0.03 per share, fully diluted, up from $262 583 in Q3 2005.
* EBITDA (1) increased to $865 023, up from $326 418 in Q3 2005 and EBITDA (1) margin increased to 33 percent from 21 percent in Q3 2005.
Highlights for the first nine months of fiscal 2006 include:
* New corporate record for revenue at $6 864 026, up 64 percent from the prior record for 2005.
* New corporate record for royalty revenue at $5 814 548, up 51 percent from the prior record for 2005.
* New corporate record for net income at $1 206 255 or $0.08 per share, fully diluted, up from $461 823 recorded in 2005.
* EBITDA (1) increased to $2 082 345 from $705 923 in 2005 and EBITDA (1) margin increased to 30 percent from 17 percent in 2005.
* Established a new corporate record for cash at $2.9 million, up 131 percent from December 31, 2005.
White went on to list some impressive achievements for the company, which recently abandoned merger discussions with fellow Canadian online gambling software company Chartwell Technology following the legislative changes in the USA. He said that Chartwell and Parlay are continuing to meet to explore the business opportunities which were identified or considered during the merger discussions.
Achievements for the first three quarters of 2006 include:
* Existing bingo network, St. Minver Limited, launched additional network partners with 18 in place at September 30, 2006, including Butlins and Littlewoods bingo. St. Minver launched Swedish language offering transacting in Kronor.
* Existing bingo network, The Gaming Network Limited, added additional network partners to their network with 13 in place at September 30, 2006, including the recently announced launch of Paddy Power's bingo offering.
* Unibet International Limited, one of the largest privately-owned gambling operators in the European market with 1 340 000 customers in over 100 countries, launched Unibet Bingo.
* Parlay licensee Euro Gaming Limited, owner of Bingos.co.uk, was named Bingo Operator of the Year at the annual eGaming Awards.
* Release of Parlay 4.2, the latest version of Parlay's award-winning online bingo product.
"In view of the recent signing of the Unlawful Internet Gaming Enforcement Act (the "UIGEA") in the United States, we are pleased that our exposure to licensees who do not restrict the access of U.S. residents to their sites has been significantly reduced in the past two years," said White.
"For the three-month period ended September 30, 2006, our estimated revenue exposure to the U.S. business of licensees who do not restrict the access of U.S. residents to their sites was approximately 40 percent of our total revenue for that period compared to approximately 100 percent for fiscal 2004.
"As our existing licensees in the U.K. and Europe expand their businesses and as we add new licensees in those and other international marketplaces, it is our expectation that we will continue to decrease our revenue exposure to licensees who do not restrict the access of U.S. residents to their sites."
White concluded his report on an optimistic note: "We acknowledge that our future growth and profitability may be tempered by the passing of the UIGEA in the U.S., but it is our expectation that the reduction in our overall exposure to the U.S. marketplace together with amending the way in which we conduct business with our licensees who do not restrict the access of U.S. residents to their sites will limit the impact of the UIGEA on Parlay."
